Restaurant Style Paneer Butter Masala is one of the most popular recipes among Indian Vegetarians. It is rich, creamy restaurant style mildly spiced paneer curry cooked in tomato cashew nut gravy. Pairs well with Jeera Rice, Garlic Naan & Cucumber Raita.
So, if you have a party in your home, do try this delicious 30 minutes dish and enjoy with your friends and family.
{Step by Step method included along with a detailed FAQ’s answered}
Pick up the menu card in any Indian restaurant and the first dish that we tend to order is Paneer Butter Masala. This delicious Paneer dish is so tempting with its mild sweetness, spiciness, and creaminess that we are bound to fall for it, every single time.
Recently I had the opportunity to create an Indian Thali for ASDA Diwali Party Supper club and we did feature this curry in our thali. All the 20+ guests gave me commendable comments and also mentioned this is the BEST Paneer Butter Masala ever.
One other reason the guests loved it is because I make my curry with Fresh Vine Tomatoes and not Canned Tomatoes. They could easily make a difference and did mention how much they loved this curry. I really cannot ask for any more!
Good news is that we can replicate this easy restaurant style recipe, right at the comfort of your home in 30 Minutes. This restaurant style Paneer curry takes no time, as long as you have got all the ingredients sourced. Everyone has their own unique style of making this curry and there are at least a 50 versions! If you are quite familiar with PBM, then skip straight to the recipe content.
Paneer Butter Masala is also known by many other names – Shahi Paneer, paneer masala, vegetarian paneer butter chicken …
So,
What Is Paneer Butter Masala?
Paneer Butter Masala is a rich, creamy, Indian curry made with Paneer ( Indian Cottage Cheese ) Soft Paneer Cubes are cooked in a creamy curry made with tomatoes, butter, cream and cashews. It is mildly sweet & spicy flavor and pairs well with garlic naan & cumin rice.
What if I tell you, this recipe is versatile and you can replace Tofu or Chicken for homemade Paneer and make it as Chicken Butter Masala or Tofu Masala too.
Let me also tell you, by no ways, Paneer Butter Masala is a healthy curry – It’s Indulgent and full-on flavours. But one good thing is that if ever you are looking for an indulgent Ghar ka khana recipe, this is the one.
BTW – This list for 9 EVERYDAY INDIAN MEALS IS AWESOME. Don’t forget to checkout the extensive Meal Plan ideas.
THIS PANEER BUTTER MASALA
- is a restaurant-style Paneer curry
- can be easily customised to a Vegan curry. Read the post in detail on substitutions.
- makes a delicious curry for occasions and family gatherings.
- can be made in advance and freezes really well.
- takes about 30 minutes from scratch!
- tastes amazing with tandoori roti
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Paneer Butter Masala & Paneer Makhani
Let me clear this confusion – they are two different paneer dishes. Though both of them are tomato-based gravy with lots of cream and butter, proportion and texture vary. Butter paneer gravy is made by sautéing tomatoes, whole spices cashew nuts, and then pureed. However, the later curry does not use cashew nut in the recipe.
We make this Easy Butter Paneer Masala Restaurant Style at least once a week and it’s an absolute favourite among kids too.
PANEER BUTTER MASALA ingredients
This mouth-watering Paneer recipe has some of the simplest ingredients, yet the flavours are just out of the world. What if I tell you, Tomato, Ginger & Garlic forms the base of this paneer curry and a major chunk of the flavours comes from them. There are very little additional spices & whole spices along with them.
What You will need
Creaminess in this Butter masala comes from Butter, Cashews & Cream.
Hey, by now you would have noticed, this paneer curry does not have onions too.
Tomatoes – Use Ripe Vine Tomatoes for this curry as they lend the gorgeous color too. You may also use Canned Tomatoes, but remember the gravy can be a bit too tangy and you will have to adjust the flavors accordingly.
Ginger & Garlic – are absolutely essential to bring out the best flavours.
Whole Spices – Bay Leaf & Cinnamon
Spice Powders – Chilli Powder, Cardamom Powder, Coriander Powder & Garam Masala
Cream – Homemade or store bought single / double cream works
Cashew nuts
Butter
Paneer – Make Paneer at home as they are always the best. But, you may also use store bought paneer like I have used. Remember to soak in hot water for at least 10 minutes and see for yourself how soft they are.
Before we actually proceed to the recipe, let me share with you some of the best practices to make the best restaurant style version of this curry.
Tips to make the BEST BUTTER PANEER
Use Red Vine Tomatoes to make the makhani gravy. If Vine Tomatoes are not available, you can use Salad Tomatoes or even Canned Tomatoes. But you must remember Canned Tomatoes can be tangy and you need add a little more sugar to cut the tanginess.
Nuts – Cashew nuts renders a beautiful creaminess and body this tomato gravy. You may choose to use Melon Seeds, Poppy Seeds, Almonds as an alternative. Using alternative nuts can slightly vary the flavour too.
Color – To obtain rich orange red hue colour for this gravy, use ripe red tomatoes. Some people do prefer to add food colour or paprika too to enhance the colour of the gravy.
Cream & Butter – As the name suggests, Paneer Butter Masala uses butter ( off course ! ) & cream generously. Don’t be too skinny in adding them as both the ingredients are essential in imparting the creaminess and rich body to the gravy.
Paneer – DO NOT Cook Paneer for too long after adding it in the gravy. It can turn rubbery and chewy by doing so.
Process Smooth – Remember to blend the chopped tomatoes, cashew, ginger, garlic and chillies to a smooth paste. This has a great impact on the texture of the curry.
How to make Paneer Butter Masala Step by Step
Preparation of Butter Masala Gravy
- In a deep pan, heat 2 tbsp of butter and oil. Add red chillies, ginger, garlic and saute for a minute.
- Tip in cashew and saute for another one minute.
3.Add the chopped tomatoes, stir.
4.Cover and cook the tomatoes until they are soft. This takes about 5-6 minutes.
5.Turn off the flame and allow the tomato cashew nut mixture to cool down.
6.Transfer the mixture to a blender and blend to a smooth tomato puree.
Steps involved in the Butter Paneer Masala Recipe
- In the same pan, heat the remaining butter and add bayleaf and cinnamon stick. Saute for 30 seconds.
2& 3. Add the blended tomato puree, chilli powder, cardamom powder, coriander powder, salt & sugar and allow this mixture to cook for 5- 6 minutes or until they slowly leave the side of the pan.
5. Continue to stir when the gravy leaves the side of the pan.
6.Add 1 Cup of water to the gravy.
7., Stir well and allow it to boil for 2 minutes.
8.Add the paneer, garam masala, cream, kasuri methi to the gravy and mix well.
9.Cook for another one minute and switch-off the flame.
10. Garnish with cream, coriander leaves. Serve hot with Naan Bread, Cumin Rice and Cucumber Raita for a complete meal
As a full on Paneer Lover, we love to get our Indian Curry right, and have so many questions revolving around our favourite butter paneer masala recipe. Here’s everything answered for you. Just incase you don’t find the answer, simply ask me in comments and I’ll try my level best to answer.
FREQUENTLY ASKED QUESTIONS FOR THIS PANEER RECIPE
How to make Vegan Paneer Butter Masala?
Vegan version of PBM is a perfect balance of sweet, spicy, creaminess and deliciousness with no compromise on indulgent flavours. It is absolutely easy to make Vegan Butter Paneer Masala with just a few substitutions.
Simply replace Paneer with Tofu or Vegetables like Mushroom.
Use Coconut Cream/ Cashew Cream for regular cream.
Use Coconut Oil or Vegan Butter for Butter in the recipe.
How To Make No Onion No Garlic Butter Paneer?
Jain version of this curry can be easily made by leaving out garlic from this curry recipe, as this restaurant style recipe does not use any onion.
Alternate Cheese To Make this curry?
Halloumi Cheese works great as an alternative cheese. If you do not enjoy paneer or tofu, then do swap for halloumi in the recipe.
If you don’t have cashews or have an allergy for cashews,
Use almonds. In this case soak the almonds in hot water. Peel them and blend it with water.
Can I make Instant Pot Paneer Butter Masala?
Add all the ingredients leaving the cream and paneer in the IP and pressure cook. When the steam releases naturally, process the gravy smooth. Add Cream, Kasuri methi, Paneer, stir and serve.
Serving Suggestions
Serve paneer butter masala with naan bread, paratha or even roti’s. It pairs well with cumin rice as well as steamed rice.
How about if I tempt you with quick and easy Paneer Recipes.
More Paneer Recipes for you
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HAVE YOU MAKE THIS RECIPE?
Be sure to leave a comment and/or give this recipe a rating! Post a photo on my Facebook page, share it on Instagram, or save it to Pinterest with the tag #sandhyaskitchen. I would love to see your take on this RESTAURANT STYLE PANEER BUTTER MASALA CURRY! Trust me, it is lip-smacking.
RESTAURANT STYLE PANEER BUTTER MASALA RECIPE | BUTTER PANEER RECIPE

RESTAURANT STYLE PANEER BUTTER MASALA | BUTTER PANEER MASALA RECIPE
Print Pin RateIngredients
Ingredients for Paneer Butter Masala
- 250 g Paneer ( Indian Cottage Cheese )
- 5 Tbsp Butter
- 1 Tbsp Oil
- 2 dried Kashmiri Red Chilli
- 1 "Â Ginger
- 4 Large Cloves Garlic
- 18-20 Cashew nuts
- 4 Large Vine Tomatoes Approx 550g
- 2 Bay Leaf
- 1 " Cinnamon Stick
- 1 Tsp Red Chilli Powder
- 2 Tsp Coriander Powder
- 1/4 Tsp Cardamom Powder
- 1 Tsp Garam Masala
- 3 Tbsp Cream
- 1 Tsp Salt
- 1/4 Tsp Sugar
Garnish
- 3 Tsp Coriander Leaves
- 1 Tsp Cream
Instructions
Preparation for Paneer Butter Masala Gravy
- Cube the Paneer and soak them in hot water for 10 minutes.
- In a deep pan, heat 2 tbsp of butter and oil.
- Add red chillies, ginger, garlic and saute for a minute.
- Add cashew nuts and saute for another one minute.
- Add the tomatoes, stir. Cover and cook the tomatoes until they are soft. This takes about 5-6 minutes.
- Turn off the flame and allow the tomato cashewnut mixture to cool down.
- Transfer the mixture to a blender and blend to a smooth tomato puree.
How to make Paneer Butter Masala
- In the same pan, heat the remaining butter and add bayleaf and cinnamon stick. Saute for 30 seconds.
- Add the blended tomato puree, chilli powder, cardamom powder, coriander powder, salt & sugar and allow this mixture to cook and slowly leave the side of the pan.
- Add 1 Cup of water, stir well and allow it to boil for 2 minutes.
- Add the paneer, garam masala, cream, kasuri methi to the gravy and mix well. Cook for another one minute and switch off the flame.
- Garnish with cream and coriander leaves.
- Serve hot Paneer Butter Masala curry with Naan Bread, Cumin Rice and Cucumber Raita for a complete meal.
What brand masala you use it and what kind?
I do make Garam Masala at home or use Everest/ MDH brand Garam Masala.